The decline in wealth induces households to postpone retirement by one year, on average, with poorer households remaining relatively unaffected; households cut health expenditures, which increases mortality; and households save less than they otherwise would since their lifetime horizon is shorter.

We estimate the impact of an unanticipated increase in the Early Eligibility Age (EEA) for retirement from age 62 to 64 when households are 55 years old.

Households decrease their consumption beginning at age 55, especially poorer households, and increase their savings.

The median retirement age rises to 64 from 62.

Households spend a little less on medical expenses, and working longer mitigates the adverse consequences for health for most households.